Corsair Gaming (CRSR) AI Stock Analysis

• Market Cap: $649.05M
• Dividend Yield: N/A
• Average Volume (3M): 981.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -9.83%
• EPS Growth: -3191.56%
• Country: US
• Employees: 2,567
• Sector: Technology
• Sector Strength: 49
• Industry: Computer Hardware
• EPS (TTM): -0.95
• Shares Outstanding: 104,855,200
• 10 Day Avg. Volume: 1,166,611
• 30 Day Avg. Volume: 981,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.80
• Price to Cash Flow (P/CF): 4.80
• P/FCF Ratio: 4.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $12.00
• Price Target Upside: 93.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

Corsair Gaming is navigating financial challenges with declining revenues and negative profitability, impacting its financial performance. However, technical indicators show positive momentum, suggesting potential short-term gains. The earnings call provides a positive outlook for 2025, but valuation concerns persist due to a negative P/E ratio. The stock score reflects a mix of operational challenges and promising future growth prospects.

Positive Factors

Market Rebound

Corsair's domestic market has rebounded after a macro-driven slowdown, while its European market is beginning to rebound.

Product Partnerships

Corsair launched quality partnerships on key products in peripherals and should benefit from a solid year of game releases.

Negative Factors

Component Market Challenges

Gamers are opting to buy less for computer builds, hold off, or trade down.

Hardware Refresh Delays

2024 has been a challenging year with the expected hardware refresh cycle continually being pushed back.

Corsair Gaming Business Overview & Revenue Model

Company Description

Corsair Gaming, Inc., together with its subsidiaries, designs, markets, and distributes gaming and streaming peripherals, components and systems in the Americas, Europe, the Middle East, and the Asia Pacific. The company offers gamer and creator peripherals, including gaming keyboards, mice, headsets, and controllers, as well as capture cards, stream decks, USB microphones, studio accessories, and EpocCam software. It also provides gaming components and systems comprising power supply units, cooling solutions, computer cases, and DRAM modules, as well as prebuilt and custom-built gaming PCs, and others; and PC gaming software comprising iCUE for gamers and Elgato's streaming suite for streamers and content creators. In addition, the company offers coaching and training, and other services. It sells its products through a network of distributors and retailers, including online retailers, as well as directly to consumers through its website. The company was incorporated in 1994 and is headquartered in Fremont, California. Corsair Gaming, Inc. is a subsidiary of Corsair Group (Cayman), LP.

How the Company Makes Money

Corsair Gaming generates revenue through the sale of its broad range of gaming and computing products. The company's primary revenue streams consist of gaming peripherals, such as keyboards, mice, and headsets, as well as gaming components including memory modules, cooling solutions, and power supplies. Additionally, Corsair's revenue is bolstered by its gaming PC systems and streaming gear offerings. The company benefits from strong brand recognition and a loyal customer base, which is enhanced by strategic partnerships and collaborations with esports teams, streamers, and gaming influencers. These partnerships help increase brand visibility and drive product demand within the gaming community.

Corsair Gaming Financial Statement Overview

Summary

Corsair Gaming faces operational and profitability challenges with negative net income and declining revenues. High operational costs lead to negative EBIT and EBITDA margins, though the company maintains a relatively strong equity position and positive free cash flow, indicating efficient cash management.

Income Statement

The company has faced challenges with negative net income and declining revenue, as seen in the TTM (Trailing-Twelve-Months) data. Gross profit margin is stable, but EBIT and EBITDA margins have turned negative, indicating operational difficulties. There is a negative revenue growth trend from 2023 to 2024, which affects overall profitability.

Balance Sheet

Corsair Gaming maintains a relatively strong equity position with an improving debt-to-equity ratio, suggesting a conservative leverage approach. However, the declining equity ratio indicates potential asset management issues. Return on equity remains negative due to negative net income, impacting overall balance sheet health.

Cash Flow

The company demonstrates positive free cash flow despite declining operating cash flow, which is a positive sign of cash management. However, the free cash flow growth rate has declined significantly compared to previous periods. The operating cash flow to net income ratio is strong, showing efficient cash generation relative to net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.32B	1.46B	1.38B	1.90B	1.70B
	Gross Profit
327.60M	360.26M	296.63M	513.85M	465.43M
	EBIT
-49.95M	9.69M	-54.79M	137.89M	158.36M
	EBITDA
-49.95M	64.64M	-1.06M	182.99M	201.59M
	Net Income Common Stockholders
-85.18M	-2.59M	-53.95M	100.96M	103.22M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
107.01M	175.62M	153.83M	65.15M	133.34M
	Total Assets
1.24B	1.36B	1.30B	1.34B	1.31B
	Total Debt
12.23M	246.50M	295.17M	308.26M	338.96M
	Net Debt
-94.78M	70.88M	141.35M	243.11M	205.63M
	Total Liabilities
616.38M	663.48M	641.81M	769.22M	876.73M
	Stockholders Equity
604.30M	667.58M	623.84M	568.18M	437.39M
Cash Flow		Free Cash Flow
26.03M	76.39M	40.07M	9.22M	159.96M
	Operating Cash Flow
35.88M	89.15M	66.39M	20.19M	168.95M
	Investing Cash Flow
-52.70M	-26.98M	-47.03M	-20.54M	-10.28M
	Financing Cash Flow
-50.68M	-37.39M	72.61M	-65.40M	-79.13M

Corsair Gaming Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRSR, the sentiment is Negative. The current price of 6.19 is below the 20-day moving average (MA) of 8.61, below the 50-day MA of 9.98, and below the 200-day MA of 8.06, indicating a bearish trend. The MACD of -1.10 indicates Positive momentum. The RSI at 27.56 is Positive, neither overbought nor oversold. The STOCH value of 18.33 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRSR.

Corsair Gaming Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMCI	69 Neutral	$19.67B	14.46	32.21%	―	124.51%	87.78%
STX	65 Neutral	$14.85B	12.84	-109.27%	4.05%	24.17%	―
WDC	64 Neutral	$11.97B	8.21	13.99%	―	38.59%	―
HPQ	63 Neutral	$22.10B	8.42	84.33%	4.82%	1.03%	-18.56%
DELL	63 Neutral	$57.17B	12.85	-179.12%	2.17%	7.84%	42.63%
CRSR	60 Neutral	$649.05M	―	-15.60%	―	-9.83%	-3191.56%
Sector *	57 Neutral	$19.95B	9.66	-12.09%	2.76%	5.40%	-24.89%

Corsair Gaming Corporate Events

Corsair Gaming Announces CEO Transition in 2025

On February 12, 2025, Corsair Gaming announced the retirement of its founder and CEO, Andy Paul, effective July 1, 2025, after 31 years with the company. Thi La, currently President and COO, has been appointed as his successor and will take over on the same date. La has been with Corsair since 2010, significantly contributing to its growth from a $300 million company to a diverse entity with 30 product lines. Her appointment is expected to continue the company’s trajectory of innovation and market leadership. Stakeholders can anticipate a seamless transition, as La’s extensive experience and vision align with Corsair’s goals of further growth and product development.